When the price level increases in the economy,
we generally know that the value of money decreases.
However, what is the definition of money here?
Is it just currency? Or does it include assets, such as stocks and bonds?
Because if the price rises, due to the interest rate effect people sell their bonds and stocks. So the creditors charge a higher interest rate. Then the means that the value of assets becomes higher right?
Could someone explain this logic clearly? Thank you!